Datadog stock rockets higher after profit tops expectations

Datadog Inc. shares
DDOG,
-7.82%
were up more than 10% in premarket trading Thursday after the software company exceeded expectations with its third-quarter profit. The company reported a net loss of $26.0 million, or 8 cents a share, whereas it posted a loss of $5.5 million, or 2 cents a share, in the year-earlier quarter. On an adjusted basis, Datadog earned 23 cents a share, up from 13 cents a share a year prior, while analysts tracked by FactSet were anticipating 16 cents a share. Revenue increased to $436.5 million from $308.8 million. The FactSet consensus was for $441.9 million in revenue. For the fourth quarter, Datadog executives expect $445 million to $449 million in revenue along with 18 cents to 20 cents in adjusted earnings per share. The FactSet consensus was for $448 million in December-quarter revenue and 15 cents in adjusted EPS. Datadog’s stock has declined 58% so far this year as the S&P 500
SPX,
-2.50%
has fallen 21%.